Unless you are one of the fortunate few, you are going to need financing to buy a home. One of the things that is looked at closely by lenders is your employment.

How Your Job Impacts Your Ability To Get a Mortgage

When you are ready to buy your first home or move up to a bigger, better property, you need to consider your financing options. While many things go into finding the best loan, most people are first concerned about actually being approved for a loan. One of the factors that is critical when an underwriter analyzes your loan application is your employment status. Mortgages are all about risk in the eyes of a lender. Your employment status is a huge factor in evaluating that risk.

When we talk about employment, we are going to focus on the three most common categories. The first is the salaried employee who receives the same earnings each month. The second is the self-employed person who owns their own business and has fluctuating revenues. The third is the commissioned person, a salesperson, who also receives fluctuating revenues based on their production each month.

Salaried employees are the simplest for lenders to evaluate. The annual earnings of this person are a set figure. Lenders are very comfortable with this designation because they can accurately predict the money you have coming in relation to debts and so on. In general, lenders are looking for stability in employment with a two-year history. If you have changed your job, make sure to explain why and try to stay in the same general profession.

Self-employed individuals are in a bit more of a bind when it comes to mortgages. If you are in this designation, you tend to show a range of earnings versus a steady amount each month. Moreover, you also tend deduct just about everything you can to limit taxes. This can cause problems when you apply for a loan because your reported income is low. If you are self-employed, lenders are going to want to see tax returns, bank account statements and other financial documents for the last two years. If at all possible, do not switch your business effort to a new line of work during this two-year period as the lender will consider it a brand new business and raise its risk assessment.

Commissioned employees are more and more common these days as corporate culture changes. If you fall in this designation, the good news is lenders are much more comfortable with commission earnings these days. As with self-employed individuals, however, it is important that you do not change your job in the two years prior to applying for the loan. Lenders will view such a change negatively, because they will consider your new position independently from the old one. This makes you a riskier proposition in their eyes.

If you are planning on buying a home in the next few years, stability is very important. While there are exceptions to every rule, your best course of action is to stay the course with employment before apply for a loan. You can always make changes after being approved.

Interest rates constantly fluctuate, so when is the time right to refinance your home? One of the tools that can help you decide this is a mortgage calculator.

It shows you what your new payments will be, and whether the difference is worth the leap right now.

The most common reason to do a straight refinance is to take advantage of lower interest rates to lower the payment or reduce the term (the number of years to finish paying off the note.)

To work with a refinance mortgage calculator, you will need to know details about your current loan like the original loan amount, the original term (number of years to pay off), the number of months you have already paid, your interest rate, and, perhaps, the number of years until you intend to sell.

For the new loan, the mortgage calculator will want to know the loan points and interest rate on the new loan and approximate closing costs. Do not even try to figure it out on your own. Just look up several refinance mortgage calculators on the net and open them in separate windows or tabs in your browser. Start filling the figures into one after another, setting them to calculate as soon as they are loaded. Now, take a break, and relax. When you are ready, return to the computer for the news.

Have a look at the figures for monthly payment, term, and the breakeven date. See if the mortgage calculators come anywhere near agreeing. Like the scoring in the old Olympics, throw out the high and low numbers and average the rest to get an approximation on your savings.

What you are concerned with is the breakeven date. The breakeven date is determined by the mortgage calculator as the month in which the savings on the mortgage covers the cost of the refinance itself. If the breakeven date is five years down the road and you are selling in four, then it does not matter how good the interest rates are.

You will still lose money. On the other hand, if you are expecting to stick around more than five years, now is the time to go for it. You can redo the figures on the mortgage calculators with different interest rates and different terms (number of years to repay) to see where the breakeven point and the terms line up with what you can afford to give you the best deal.

But what if you have a different reason to refinance, say to "cash out" the equity of your home, for whatever reason. Emergencies happen, debt consolidation need to occur, and a good mortgage calculator can still help you figure out how to get your best deal.

When you feel like you know what you want, print out the best options, collect up your documents and head to the mortgage broker. One note: a refinance is a new note; you will be paying all appraisal fees, points and closing costs associated with a brand new note. The mortgage calculator does not take this into account. Proceed carefully and cautiously.

Bridging Finance Basics

Bridging finance, sometimes referred to as high speed property finance, is a 'financial tool' used to raise funds against the value of a property. These funds can be used for any legal purpose, maybe to purchase an other property or to raise capital for some other reason. Bridging finance is primarily for short term purposes - typically one or two months but can be for up to two years. Literally any residential or commercial property which has provable value can be used to secure a bridging loan. Some of the main purposes to which bridging loans can be put:

* Purchase of a residential or commercial property before the sale (or re-mortgage) of an existing property.
* Purchase of a property where speed is essential to clinch the deal
* Funding can be arranged for property in need of substantial repair or refurbishment pending a long term mortgage.
* To avoid bankruptcy of other financial crisis by releasing the equity in a property.

Bridging loans can either be based on the “restricted sale value” of a property or the Open Market Value (OMV). The difference is simply down to the preference of an individual lender, a specialist commercial broker will be well aware of the difference and should ensure that this is made clear to the client.

Because the loan can be based on the Open Market Value of the property it is not at all unusual to see loans being arranged in excess of 100% of the purchase price. This is a major attraction to most property investors who are able to negotiate purchases well below market value. In the event that additional funds are required additional security can be used to “top-up” the loan.

How does it work?

A professionally prepared valuation report is the back-bone of a bridging loan. Most bridging loan applications undergo relatively few background checks on the client’s ability to repay the loan, therefore the lender has to rely on the valuation for their security. Most bridging lenders will have a preferred list of surveyors so it is best to leave arranging the valuation to your broker.

Whilst waiting for the valuation report the lender will usually carry out their statutory checks on the applicant and be ready to issue the formal offer documents or facility letter when the valuation has been completed.

The exact process will vary from lender to lender, but in most cases once the offer has been issued and the valuation report checked the case is handed over to the solicitors who will then conclude the matter. It is vital that you obtain independent legal advice when arranging bridging finance. Your choice of solicitor will have considerable influence on how quickly the process can be completed. It is worth checking you local phone book for firms of solicitors who have a commercial department, these solicitors are mostly likely to have carried out this type of high speed transaction before. Most solicitors expect to take eight weeks or more to conclude property transactions, bridging finance is usually completed within two or three days of a satisfactory valuation report being received. (Obviously the author is not aiming any criticism at solicitors!)

If you are in the process of refinancing your home loan, there are a number of common mistakes you need to be aware of. Here are three home loan refinancing pitfalls you need to keep an eye out for when refinancing your mortgage.

Watch Out For Prepayment Penalties

A prepayment penalty is a clause in your loan contract that requires you to pay a penalty if you refinance or sell your home before the penalty expires. Prepayment penalties can be expensive, mortgage lenders often charge up to six months worth of interest on 85% of the original loan balance. Predatory mortgage lenders include excessive fees in their loan contracts to discourage you from refinancing the loan. If you have good credit there is no reason to accept a home loan with this penalty.

Never Agree to Arbitration

Predatory mortgage lenders often ask you to agree to arbitration as a condition of having your loan approved. If you agree to arbitration you are forfeiting many of the rights and protection you receive under the law. Agreeing to arbitration means that you agree to a third party arbitrator resolving any legal disputes you have with the lender. Never agree to arbitration with any mortgage lender.

Watch Out for High Interest Rates and Fees

Predatory mortgage lenders often try and sell subprime mortgages to homeowners with good credit. This means you are taking out a bad credit mortgage regardless of your credit rating and will pay higher interest rates, lender fees, and points. The only way to know for sure that what you’re paying is fair is to shop from a variety of mortgage lenders and compare all aspects of the loans. You can learn more about comparison shopping for the best mortgage by registering for a free mortgage guidebook.

If you are refinancing your home mortgage, you can save yourself a lot of money by researching mortgage lenders before you apply. Shopping for the best home loan will not only save you money but help you avoid many of the mistakes homeowners make. Here are 3 tips to help you find the most competitive mortgage offer for your financial situation.

I. Shop for Home Loans Online

The Internet is an excellent tool to help you find mortgage offers. You can quickly screen dozens of mortgage lenders and do side-by-side comparisons right off a lender’s website. Competition in the mortgage industry is fierce; using the Internet to comparison shop for mortgage loans allows you leverage this competition in your favor.

II. Compare All Aspects of the Loans

Many homeowners make the mistake of only comparing the interest rate when shopping for a new home loan. If you concentrate solely on interest rates, or only use the Annual Percentage Rate, you may overlook fees that will cost you thousands of dollars. Mortgage lenders are required to provide you a document that itemizes all expenses upon receipt of your application. There is a way to get this document and use it to screen loan offers before you apply. To learn more about comparing loan offers to find the best deal, register for a free mortgage guidebook.

III. Explore All of Your Options

Good mortgage lenders offer a variety of loan programs that can be tailored for any financial situation. Choosing the wrong mortgage is an expensive mistake that could ultimately cost you the home. You can learn more about choosing the right mortgage for your individual financial situation by registering for a free mortgage guidebook.

If you are refinancing your mortgage there are a number of mistakes that will cause you to overpay for your new mortgage loan. Doing your homework and researching mortgage lenders will help you avoid making these mistakes. Here are three things to watch for when refinancing your home loan.

I. Watch Out for Balloon Payments

If you accept a mortgage with a balloon payment you will be required to pay the amount due on a date specified in your loan contract. If you are unable to make this payment you will have to refinance the loan or sell your property to avoid foreclosure. Mortgages with balloon payments are typically used by real estate investors as a source of short term financing; however, predatory mortgage lenders use them as part of a ploy to take your home. Unless you know exactly what you are getting yourself into avoid any home loan with a balloon payment.

II. Watch Out for Excessive Fees & Rates

If you are a homeowner with poor credit you can expect to pay more for your new mortgage. There are lenders that will take advantage of your credit and charge you excessive fees and rates. Some Predatory lenders try and sell bad credit loans to homeowners with good credit in order to charge higher rates. The only way to know what fair rates and fees are for a homeowner in your financial situation is comparison shop from a variety of mortgage lenders. When you comparison shop the right way it is easy to spot mortgage lenders that are trying to take advantage of you. You can learn more about comparison shopping for the best mortgage by registering for a free mortgage guidebook.

III. Be Careful With Adjustable Rate Mortgages

Adjustable rate mortgages have more risk than traditional fixed rate mortgages. Many homeowners are enticed by the introductory rates and low payment amounts; these homeowners often don’t realize their payments will go up significantly at the end of the introductory period. In addition to this payment increase, the mortgage lender will adjust your interest rate periodically and change your monthly payment depending on prevailing interest rates.

You can learn more about your home loan options by registering for a free mortgage guidebook.

If you are thinking about refinancing your home loan you might want to consider using a broker to help you find the best mortgage offer. Working with a broker will help you compare offers from dozens of mortgage lenders; however, you should be careful when entering an agreement with a mortgage broker. Here are several tips to help you avoid overpaying when using a mortgage broker to refinance your home loan.

The Internet As a Mortgage Tool

The Internet is an excellent way to locate and compare mortgage brokers. A mortgage broker is an individual paid a commission for referring your business to a mortgage lender. Mortgage broker’s fees vary, it pays to shop around and read the fine print before entering an agreement with a mortgage broker. The advantage of using a mortgage broker is that they have extensive contacts with mortgage lenders and can find you mortgage offers you might not find on your own.

Use Multiple Mortgage Brokers

There is nothing preventing you from working with more than one broker. Comparison shopping works best with the maximum number of brokers and lenders. Don’t be afraid to negotiate with mortgage brokers and lenders for better terms and interest rates.

Compare All Aspects of the Loans

When you comparison shop it is important to compare all parts of the loan offers, not just the interest rate or Annual Percentage Rate. Homeowners that focus solely on interest rates overpay thousands of dollars for other fees. There is a simple way to do a line by line comparison using documentation the lender is required to provide you after receiving your application. You can even get this documentation prior to applying, allowing you to make an informed decision as to which loan is best. To learn more about comparing loan offers and shopping for the best home loan, register for a free mortgage guidebook.

Most people do not know what title insurance is at least until they actually purchase a house or refinance and existing home mortgage. Even then the majority does not even give it a second thought. This is because it is simply one piece of a large volume of documents that are signed at closing time. As a result they are unaware that in most cases they are being overcharged for title insurance. Many title companies charge junk fees and overcharge standard fees since they know the customer has no idea what fees are part of the title insurance policy and will probably not look any further into it. The fact is that consumers should be more aware of what title insurance. If consumers were more educated they would understand that there is the potential to save $100’s, even $1000’s on title insurance and closing costs.

One of the biggest issues in the title industry today is the use of kick backs to real estate brokers and mortgage brokers by title companies. Although they are illegal some title companies have found ways around the law and till utilize these practices. Kick backs are essentially rewards to the brokers for sending the business to a title company. The title company charges extra fees to increase the title insurance premium and gives a kick back to whoever brought them the business. Title insurance costs customers billions annually and if even a small percentage of that goes to junk fees for kick backs it is still a significant amount of money. This does not have to be the case.

When it comes to buying title insurance most consumers will use the company recommended by their mortgage or real estate broker. Most are also unaware that they DO NOT have to use the person recommended. Consumers are free to shop around for their title insurance to get the best price possible. When getting a title insurance quote it is imperative to ask for a detailed list of the fees and charges that make up the total premium. If a company will not provide a detailed breakdown they are probably trying to hide something. Shop around and compare the quotes to determine the best price. Let your broker know so the closing can be set up and the transaction completed.

Many consumers have no problem haggling over the price of the house or their interest rate on the mortgage loan but are unaware that they can also save thousands in the closing process by simply shopping around for better prices on title insurance. What’s the point in getting the price of the house lower if you are going to turn around and pay that same amount up front for title insurance? Don’t make that mistake. Educate yourself and understand all aspects of the closing process and costs associated with title insurance to avoid being overcharged. It could potentially save you thousands.

I wasn't born a skeptic. Actually I'm probably more naïve than not. But over the years, thru life's travails, I have become one. Maybe being married to a pathological liar for twenty plus years had something to do with it-but I digress.

When I first heard about reverse mortgages, maybe three years ago, they were still in their infancy and it seemed as though there wasn't much information available-which fueled the skepticism. Gradually I started hearing and seeing more about reverse mortgages-but it was all on the upside-there seemingly was no downside-which again fueled my skepticism.

So I went looking for trouble and guess what? I am not having any luck at all. Could this be better than sliced bread? Well for sure reverse mortgages are not for everyone. For those who are eligible they can be a Godsend.

HOW THEY WORK In a regular "forward" mortgage you make payments to reduce the debt and build up equity. In a "reverse" mortgage (RM) you reduce equity and build up the debt

As of this moment RM is the fastest growing product in the marketplace. There are five more RM products to hit the marketplace in the next year and the market segment eligible for these products is the fastest growing demographic in the country-BABY BOOMERS.

There are several reasons for this popularity. Here are just a few.

---INCOME VERIFICATION There is none. Even if you have no money coming in as long as you meet the eligibility requirements you are good to go.

---DEFAULT FOR NON PAYMENT Non payment of the loan is the biggest reason for foreclosures. There are no payments eliminating that headache.

---PROCEEDS USES The borrower can use the proceeds any way they want.

Yes Virginia, it could be the best thing since sliced bread.

It does appear as though reverse mortgages have no downside if you've done your homework and if you qualify. For more and more BABY BOOMERS coming of age maybe there is a pot full of money at the end of the rainbow.

Unless you are one of the fortunate few, you are going to need financing to buy a home. One of the things that is looked at closely by lenders is your employment.

How Your Job Impacts Your Ability To Get a Mortgage

When you are ready to buy your first home or move up to a bigger, better property, you need to consider your financing options. While many things go into finding the best loan, most people are first concerned about actually being approved for a loan. One of the factors that is critical when an underwriter analyzes your loan application is your employment status. Mortgages are all about risk in the eyes of a lender. Your employment status is a huge factor in evaluating that risk.

When we talk about employment, we are going to focus on the three most common categories. The first is the salaried employee who receives the same earnings each month. The second is the self-employed person who owns their own business and has fluctuating revenues. The third is the commissioned person, a salesperson, who also receives fluctuating revenues based on their production each month.

Salaried employees are the simplest for lenders to evaluate. The annual earnings of this person are a set figure. Lenders are very comfortable with this designation because they can accurately predict the money you have coming in relation to debts and so on. In general, lenders are looking for stability in employment with a two-year history. If you have changed your job, make sure to explain why and try to stay in the same general profession.

Self-employed individuals are in a bit more of a bind when it comes to mortgages. If you are in this designation, you tend to show a range of earnings versus a steady amount each month. Moreover, you also tend deduct just about everything you can to limit taxes. This can cause problems when you apply for a loan because your reported income is low. If you are self-employed, lenders are going to want to see tax returns, bank account statements and other financial documents for the last two years. If at all possible, do not switch your business effort to a new line of work during this two-year period as the lender will consider it a brand new business and raise its risk assessment.

Commissioned employees are more and more common these days as corporate culture changes. If you fall in this designation, the good news is lenders are much more comfortable with commission earnings these days. As with self-employed individuals, however, it is important that you do not change your job in the two years prior to applying for the loan. Lenders will view such a change negatively, because they will consider your new position independently from the old one. This makes you a riskier proposition in their eyes.

Bridging Finance Basics

Bridging finance, sometimes referred to as high speed property finance, is a 'financial tool' used to raise funds against the value of a property. These funds can be used for any legal purpose, maybe to purchase an other property or to raise capital for some other reason. Bridging finance is primarily for short term purposes - typically one or two months but can be for up to two years. Literally any residential or commercial property which has provable value can be used to secure a bridging loan. Some of the main purposes to which bridging loans can be put:

* Purchase of a residential or commercial property before the sale (or re-mortgage) of an existing property.
* Purchase of a property where speed is essential to clinch the deal
* Funding can be arranged for property in need of substantial repair or refurbishment pending a long term mortgage.
* To avoid bankruptcy of other financial crisis by releasing the equity in a property.

Bridging loans can either be based on the “restricted sale value” of a property or the Open Market Value (OMV). The difference is simply down to the preference of an individual lender, a specialist commercial broker will be well aware of the difference and should ensure that this is made clear to the client.

Because the loan can be based on the Open Market Value of the property it is not at all unusual to see loans being arranged in excess of 100% of the purchase price. This is a major attraction to most property investors who are able to negotiate purchases well below market value. In the event that additional funds are required additional security can be used to “top-up” the loan.

How does it work?

A professionally prepared valuation report is the back-bone of a bridging loan. Most bridging loan applications undergo relatively few background checks on the client’s ability to repay the loan, therefore the lender has to rely on the valuation for their security. Most bridging lenders will have a preferred list of surveyors so it is best to leave arranging the valuation to your broker.

Whilst waiting for the valuation report the lender will usually carry out their statutory checks on the applicant and be ready to issue the formal offer documents or facility letter when the valuation has been completed.

The exact process will vary from lender to lender, but in most cases once the offer has been issued and the valuation report checked the case is handed over to the solicitors who will then conclude the matter. It is vital that you obtain independent legal advice when arranging bridging finance. Your choice of solicitor will have considerable influence on how quickly the process can be completed. It is worth checking you local phone book for firms of solicitors who have a commercial department, these solicitors are mostly likely to have carried out this type of high speed transaction before. Most solicitors expect to take eight weeks or more to conclude property transactions, bridging finance is usually completed within two or three days of a satisfactory valuation report being received. (Obviously the author is not aiming any criticism at solicitors!)

Types of Bridging Loan

Whilst researching bridging finance you will come across the terms “closed bridge” and “open bridge”. In principle a closed bridge is where the 'exit route' or 'repayment source' is already arranged typically where contracts have been exchanged but the funds are not going to become available in time. On the other hand, “an open bridging loan” means that there is not a confirmed repayment method. As with most things financial, there is a grey area between the two. The most important things is to make sure you are arranging the right finance for your circumstances. This is where a specialist bridging finance broker is best placed to assist.

Bridging Finance in the UK

There are now more bridging finance lenders in the UK than there have ever been, so rates are coming down and terms are becoming more flexible. When dealing with a bridging finance broker do not be afraid of asking for the terms of the loan to be explained in plain English. You will often be quoted a broker fee and a lenders arrangement fee. The interest rates and any repayment charges should be made clear at the outset.

As we said at the beginning, a bridging loan is a tool, and just like any tool it is extremely useful when used correctly

If you are refinancing your existing mortgage to lower your monthly payment amount, there are steps you can take to ensure you get best loan. There are two ways to lower your mortgage payment, regardless of your credit. Here are three tips to help you find the best mortgage with the lowest payment.

I. Do Your Homework and Shop Around

Bargain shopping can save you thousands of dollars if you know how to go about it. Don’t settle for the first promising mortgage offer you get; you need to compare loans from a variety of mortgage lenders to find the most competitive offer for your financial situation. When you compare loan offer it is important to compare all aspects of the loans, not just the interest rates.

II. Clean Up Your Credit

One way of lowering your mortgage payment is to qualify for a lower interest rate. The interest rate you will qualify for depends largely on the contents of your credit records and your credit score. Your credit score, also called your FICO score, is based on the sum of positive and negative information in your credit history. Any steps you take to improve your credit score will improve the interest rate you qualify on your new mortgage. You can learn more about cleaning up your credit and qualifying for the best mortgage by registering for a free mortgage guidebook.

III. Choose a Shorter Mortgage Term

Term length is the second factor determining your mortgage payment amount. Choosing a mortgage with the longest term length will give you the lowest term length possible; however, longer term lengths mean higher finances charges over the life of the loan. You can learn more about choosing the optimal term length for your mortgage by registering for a free mortgage guidebook.

Unfortunately, for those who have credit issues, the cost of an adverse credit homeowner loan can make it almost seem worthless to even attempt. On the other hand, obtaining another loan after an onset of credit problems can greatly enhance your future ability to obtain other loans at more favourable rates.

Costs associated with a homeowner loan

Even for those with good credit, there are costs associated with a homeowner loan, though these may be more extensive for an adverse credit homeowner loan. Some of the costs that you may incur during processing of a homeowner loan include the following:

• Application fee
• Appraisal
• Credit report fee
• Closing costs

If you obtain the loan with your primary lender, there may be fewer costs associated with the loan than if you went to a different lender. In most cases, a title search will be required because the lenders wants to make sure that any other liens that are attached to the property still leave you with enough equity to cover the loan amount that you need.

Internal costs

An adverse credit homeowner loan will more than likely have a higher interest rate than it will for those who have good credit. Sometimes the difference isn’t more than ½ - 1%, but other times it is almost double that of those who have good credit. It sounds a little bit overwhelming because you would think that if someone had bad credit, especially as it relates to lack of funds to make ends meet, that a higher interest rate would defeat the purpose in that it would make it more difficult to make the payments. Unfortunately, the lenders don’t look at it that way, bur rather, they base the interest rate on the amount of risk involved in making the loan. It’s common practice today and has been for quite a number of years now. Whether we agree with the procedure, we must accept it as part of the loan process.

Lender differences

Of course, each lender is going to set his or her own policies, so the cost of an adverse credit homeowner loan will not be the same everywhere. In fact, it may differ just with two lenders on the same block of the business district. Some people tend to think that two lenders in the same general vicinity will have the same policies, but that is far from being the truth. In fact, two branches of the same company may differ because there are two different loan officers involved. The basic regulations will be the same because they are likely determined at the corporate level, but loan officers have some leeway to make their own decisions as they see fit, and this is where differences come in with branches of the same parent company. Don’t give up if you don’t like the terms one lender offers because the next one may offer something different.

If you are in the process of refinancing your home mortgage loan, there are a number of mistakes that will rob you of your potential savings. Before you sign a loan contract it is important to do your homework and research mortgage offers to find the most competitive loan. Here are 3 common mistakes to help you avoid botching your new mortgage loan.

I. Picking the Wrong Mortgage Type

There are a variety of mortgage types, all tailored for a particular financial situation. Choosing the wrong type of mortgage would be a mistake that could even cost your home. Mortgages fall into two basics types with many varieties of each type. The basic types of mortgage loans are those with fixed interest rates and those with variable interest rates. Each type of mortgage has its advantages and disadvantages depending on the financial situation in question. You can learn more about choosing the right mortgage type for your financial situation by registering for a free mortgage guidebook.

II. Beware Excessive Fees

Many homeowners refinancing their mortgages focus only on finding the best interest rate. If you focus solely on interest rates you will overlook a number of lender fees and closing costs and could overpay thousands of dollars in fees. Excessive fees are also the sign of predatory mortgage lenders that structure their loans to take advantage of their borrowers. These predatory mortgage lenders often structure their loans to promote foreclosure. If you fall behind because of the way your loan is structured, the lender will foreclose and take your property.

III. Lose Your Home at Foreclosure

No one wants to lose their home; however, mortgage foreclosures are at an all time high in the United States. Much of this is due to the practices of a select few predatory mortgage lenders. The techniques predatory mortgage lenders use against you can actually work in your favor if you understand how to borrow. To learn more about structuring your mortgage to lower your risk of foreclosure, register for a free mortgage guidebook.

Bridging finance, sometimes referred to as high speed property finance, is a 'financial tool' used to raise funds against the value of a property. These funds can be used for any legal purpose, maybe to purchase an other property or to raise capital for some other reason. Bridging finance is primarily for short term purposes - typically one or two months but can be for up to two years. Literally any residential or commercial property which has provable value can be used to secure a bridging loan. Some of the main purposes to which bridging loans can be put:

* Purchase of a residential or commercial property before the sale (or re-mortgage) of an existing property.
* Purchase of a property where speed is essential to clinch the deal
* Funding can be arranged for property in need of substantial repair or refurbishment pending a long term mortgage.
* To avoid bankruptcy of other financial crisis by releasing the equity in a property.

Bridging loans can either be based on the “restricted sale value” of a property or the Open Market Value (OMV). The difference is simply down to the preference of an individual lender, a specialist commercial broker will be well aware of the difference and should ensure that this is made clear to the client.

Because the loan can be based on the Open Market Value of the property it is not at all unusual to see loans being arranged in excess of 100% of the purchase price. This is a major attraction to most property investors who are able to negotiate purchases well below market value. In the event that additional funds are required additional security can be used to “top-up” the loan.

How does it work?

A professionally prepared valuation report is the back-bone of a bridging loan. Most bridging loan applications undergo relatively few background checks on the client’s ability to repay the loan, therefore the lender has to rely on the valuation for their security. Most bridging lenders will have a preferred list of surveyors so it is best to leave arranging the valuation to your broker.

Whilst waiting for the valuation report the lender will usually carry out their statutory checks on the applicant and be ready to issue the formal offer documents or facility letter when the valuation has been completed.

The exact process will vary from lender to lender, but in most cases once the offer has been issued and the valuation report checked the case is handed over to the solicitors who will then conclude the matter. It is vital that you obtain independent legal advice when arranging bridging finance. Your choice of solicitor will have considerable influence on how quickly the process can be completed. It is worth checking you local phone book for firms of solicitors who have a commercial department, these solicitors are mostly likely to have carried out this type of high speed transaction before. Most solicitors expect to take eight weeks or more to conclude property transactions, bridging finance is usually completed within two or three days of a satisfactory valuation report being received. (Obviously the author is not aiming any criticism at solicitors!)

Types of Bridging Loan

Whilst researching bridging finance you will come across the terms “closed bridge” and “open bridge”. In principle a closed bridge is where the 'exit route' or 'repayment source' is already arranged typically where contracts have been exchanged but the funds are not going to become available in time. On the other hand, “an open bridging loan” means that there is not a confirmed repayment method. As with most things financial, there is a grey area between the two. The most important things is to make sure you are arranging the right finance for your circumstances. This is where a specialist bridging finance broker is best placed to assist.

Bridging Finance in the UK

There are now more bridging finance lenders in the UK than there have ever been, so rates are coming down and terms are becoming more flexible. When dealing with a bridging finance broker do not be afraid of asking for the terms of the loan to be explained in plain English. You will often be quoted a broker fee and a lenders arrangement fee. The interest rates and any repayment charges should be made clear at the outset.

As we said at the beginning, a bridging loan is a tool, and just like any tool it is extremely useful when used correctly

Unfortunately, for those who have credit issues, the cost of an adverse credit homeowner loan can make it almost seem worthless to even attempt. On the other hand, obtaining another loan after an onset of credit problems can greatly enhance your future ability to obtain other loans at more favourable rates.

Costs associated with a homeowner loan

Even for those with good credit, there are costs associated with a homeowner loan, though these may be more extensive for an adverse credit homeowner loan. Some of the costs that you may incur during processing of a homeowner loan include the following:

• Application fee
• Appraisal
• Credit report fee
• Closing costs

If you obtain the loan with your primary lender, there may be fewer costs associated with the loan than if you went to a different lender. In most cases, a title search will be required because the lenders wants to make sure that any other liens that are attached to the property still leave you with enough equity to cover the loan amount that you need.

Internal costs

An adverse credit homeowner loan will more than likely have a higher interest rate than it will for those who have good credit. Sometimes the difference isn’t more than ½ - 1%, but other times it is almost double that of those who have good credit. It sounds a little bit overwhelming because you would think that if someone had bad credit, especially as it relates to lack of funds to make ends meet, that a higher interest rate would defeat the purpose in that it would make it more difficult to make the payments. Unfortunately, the lenders don’t look at it that way, bur rather, they base the interest rate on the amount of risk involved in making the loan. It’s common practice today and has been for quite a number of years now. Whether we agree with the procedure, we must accept it as part of the loan process.

Lender differences

Of course, each lender is going to set his or her own policies, so the cost of an adverse credit homeowner loan will not be the same everywhere. In fact, it may differ just with two lenders on the same block of the business district. Some people tend to think that two lenders in the same general vicinity will have the same policies, but that is far from being the truth. In fact, two branches of the same company may differ because there are two different loan officers involved. The basic regulations will be the same because they are likely determined at the corporate level, but loan officers have some leeway to make their own decisions as they see fit, and this is where differences come in with branches of the same parent company. Don’t give up if you don’t like the terms one lender offers because the next one may offer something different.

If you are in the process of refinancing your home loan, there are a number of common mistakes you need to be aware of. Here are three home loan refinancing pitfalls you need to keep an eye out for when refinancing your mortgage.

Watch Out For Prepayment Penalties

A prepayment penalty is a clause in your loan contract that requires you to pay a penalty if you refinance or sell your home before the penalty expires. Prepayment penalties can be expensive, mortgage lenders often charge up to six months worth of interest on 85% of the original loan balance. Predatory mortgage lenders include excessive fees in their loan contracts to discourage you from refinancing the loan. If you have good credit there is no reason to accept a home loan with this penalty.

Never Agree to Arbitration

Predatory mortgage lenders often ask you to agree to arbitration as a condition of having your loan approved. If you agree to arbitration you are forfeiting many of the rights and protection you receive under the law. Agreeing to arbitration means that you agree to a third party arbitrator resolving any legal disputes you have with the lender. Never agree to arbitration with any mortgage lender.

Watch Out for High Interest Rates and Fees

Predatory mortgage lenders often try and sell subprime mortgages to homeowners with good credit. This means you are taking out a bad credit mortgage regardless of your credit rating and will pay higher interest rates, lender fees, and points. The only way to know for sure that what you’re paying is fair is to shop from a variety of mortgage lenders and compare all aspects of the loans. You can learn more about comparison shopping for the best mortgage by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

You filed for bankruptcy and after what seemed to be a lengthy time your application was granted by the courts. Fortunately, you were able to keep your house and most of your other debts including credit cards and one personal loan were discharged. Unfortunately, bankruptcy has left you in a bit of bind: your credit rating has been trashed and you fear that you will not be able to get refinancing on your home loan. Fortunately, there are ways to get financing for consumers who have filed for personal bankruptcy. Let’s take a look at some of the steps you should take before applying for a loan.

Immediately after your personal bankruptcy has been granted, you should obtain copies of your credit reports and examine them closely. Your bankruptcy will likely be listed as well as every other unfavorable comment from your creditors. You can’t do anything about that – what is done is done, but you can get the credit agency to remove any information that is false.

For the next one to two years you must work diligently to begin repairing your credit. The bankruptcy will stay on your credit reports for as long as ten years, but some of the other items can be removed or updated well before then. Keep making mortgage payments on time and pay every other bill you have on time too. If you managed to hold onto a credit card, use the card sparingly and pay it off immediately.

After two years time contact your current lender and discuss refinancing through them. Since you already have a loan with them and are up to date on payments, they may set aside their concerns and offer to you a new loan. This loan is only worth your while if it works to reduce your payments or reduce the term of the loan, or offer some other relief to you. However, if the verdict on application is returned as conditionally approved, make certain that those conditions can be met such as an additional down payment from you. If this is the case, consider borrowing funds from a family member or friend or even raiding your retirement account if needed.

I wasn't born a skeptic. Actually I'm probably more naïve than not. But over the years, thru life's travails, I have become one. Maybe being married to a pathological liar for twenty plus years had something to do with it-but I digress.

When I first heard about reverse mortgages, maybe three years ago, they were still in their infancy and it seemed as though there wasn't much information available-which fueled the skepticism. Gradually I started hearing and seeing more about reverse mortgages-but it was all on the upside-there seemingly was no downside-which again fueled my skepticism.

So I went looking for trouble and guess what? I am not having any luck at all. Could this be better than sliced bread? Well for sure reverse mortgages are not for everyone. For those who are eligible they can be a Godsend.

HOW THEY WORK In a regular "forward" mortgage you make payments to reduce the debt and build up equity. In a "reverse" mortgage (RM) you reduce equity and build up the debt

As of this moment RM is the fastest growing product in the marketplace. There are five more RM products to hit the marketplace in the next year and the market segment eligible for these products is the fastest growing demographic in the country-BABY BOOMERS.

There are several reasons for this popularity. Here are just a few.

---INCOME VERIFICATION There is none. Even if you have no money coming in as long as you meet the eligibility requirements you are good to go.

---DEFAULT FOR NON PAYMENT Non payment of the loan is the biggest reason for foreclosures. There are no payments eliminating that headache.

---PROCEEDS USES The borrower can use the proceeds any way they want.

Yes Virginia, it could be the best thing since sliced bread.

It does appear as though reverse mortgages have no downside if you've done your homework and if you qualify. For more and more BABY BOOMERS coming of age maybe there is a pot full of money at the end of the rainbow.